Refer to Figure 14.1. The substitution effect of the wage ...

[saliriagwu]

Refer to Figure 14.1. The substitution effect of the wage increase on the amount of hours of leisure is:
 
  A) L1 to L0
  B) L1 to L2.
  C) L0 to L2.
  D) L0 to L1.
  E) none of the above

Question 2

The cost-output elasticity is used to measure
 
  A) input substitution flexibility.
  B) the slope of the firm's expansion path.
  C) the slope of long-run average cost.
  D) the slope of long-run marginal cost.
  E) economies of scale.

[CharlieArnold]

Answer to Question 1

A

Answer to Question 2

E

[saliriagwu]

Thanks for the timely response, appreciate it

[apple]

Gracias!